Core Inflation Surges to Six-Month High as Tariff Pressures Mount

The U.S. inflation landscape is showing signs of renewed pressure as goods and services respond to evolving tariff dynamics and shifting consumer behavior. According to a report from Wells Fargo Economics, the core Consumer Price Index (CPI) rose by 0.3 percent in July, marking the strongest monthly gain in six months. This uptick would push the year-over-year core inflation rate back to 3 percent, underscoring a resurgence in goods inflation amid softening disinflationary trends in services. Headline CPI is expected to rise by a more moderate 0.2 percent for July, largely tempered by falling gasoline prices and a cooling in food inflation. If realized, the year-over-year rate would hold steady at 2.7 percent—slightly firmer than spring levels but still below figures seen earlier in 2025.